South Carolina Builds New U. S. Ammo Factory Backed by Pentagon

Alzchem Group AG, a German manufacturer of high‑performance propellants, has chosen Bushy Park near Goose Creek to establish its inaugural U.S. facility under a strategy to expand in the defense sector.

• Product: Nitroguanidine – a flash‑free explosive used in 155‑mm howitzer charges, airbags, and fireworks.
• Funding: The Pentagon will finance the project as part of a broader initiative to keep munitions production closer to home.
• Tax Incentives: The county council approved tax breaks for the venture, formerly known as Actegon Production LLC and “Project Eagle.”
• Investment: $150 million, creating roughly 45 full‑time jobs.
• Timeline: Construction to start next year, with completion slated for 2029.

Alzchem’s U.S. expansion follows its German plant that supplies an earlier version of the chemical to the EU market. The company argues that a domestic base will strengthen its global position and meet rising demand for this key ingredient, while the U.S. site will enhance supply security for customers.

The Department of Defense’s 2025 National Security Strategy emphasizes reshoring defense manufacturing. Alzchem’s contract aligns with similar efforts, such as Hanwha Defense USA’s $1.3 billion Arkansas plant for explosives components. The Pentagon is committed to building a modern, scalable supply chain for U.S. ammunition.